Tesla Sedan Shows Flaws Over Time, Consumer Reports Says

Rave reviews for Model S, priced from $71,000 in the U.S., by Consumer Reports and Motor Trend, have helped spur demand for the car since the first units were delivered in 2012. Photographer: Andrew Harrer/Bloomberg

Aug. 12 (Bloomberg) -- Tesla Motors Inc.’s Model S, ranked
as the best-reviewed car of the year by Consumer Reports,
exhibited minor flaws after months of driving as the magazine’s
staff continued to test the vehicle.

The non-profit publication, which buys all the cars it
tests, said the problems mostly emerged after the sedan had been
driven more than 10,000 miles (16,090 kilometers). Issues
included the center screen going blank after logging 12,000
miles, reducing access to most functions, a creaking noise from
the roof and issues with the front trunk lid release.

In an auto reliability survey last year, Consumer Reports
gave the Model S a score of average, based on feedback from 637
owners of 2012 and 2013 models, Consumer Reports said on its
website yesterday.

“Given the number of bits and pieces Tesla has replaced on
our car, it might be tempting to guess that its reliability
score will go down,” the magazine said. “The reality is, it
might -- depending on the frequency and severity of problems
reported by our subscribers and whether they show that
reliability is below average.”

Rave reviews for Model S, priced from $71,000 in the U.S.,
by Consumer Reports and Motor Trend, have helped spur demand for
the car since the first units were delivered in 2012. Elon Musk,
chief executive officer and co-founder of Tesla, said last month
that early units of the battery-powered sedan had production
flaws.

‘Quality Issues’

“We definitely had some quality issues in the beginning
for the early serial number cars, because we were just basically
figuring out how to make the Model S,” Musk told analysts on a
July 31 conference call. “I think we’ve addressed almost all of
those for current production cars.”

Consumer Reports in February said that Model S was the
first U.S. car to receive its “best overall” pick among
vehicles tested.

“We are particularly attentive in addressing potential
issues, even if those issues appear to be very minor or have a
low likelihood of causing any future problems,” Liz Jarvis-Shean, a Tesla spokeswoman, said in response to the update by
Consumer Reports. “Like any owner, Consumer Reports benefits
from the peace of mind afforded by the comprehensive Tesla
warranty.”

The issues highlighted by Consumer Reports follow a report
by Edmunds.com, an automotive data and pricing company in Santa
Monica, California. It reported problems last month with its
Model S that included replacing the main battery pack after
incidents in which the car stalled; a frozen touchscreen; a
creaky steering wheel and difficulties opening the car’s
sunroof.

Warranty Repairs

Both Consumer Reports and Edmunds.com said the glitches
they experienced were repaired by Palo Alto, California-based
Tesla and covered under warranty at no additional cost.

Musk has said Tesla continues to review customer reports to
ensure all known flaws with the car are fixed.

“Every week I have a product excellence meeting which is a
cross-functional group, so we’ve got engineering, service and
production and we go over all the issues that customers are
reporting with the car and the action items that have to be
addressed to get the car ultimately to the platonic ideal of the
perfect car,” he said on the call in July.

“That’s what we’re aiming for, because although I think
we’ve got great service, the best service is no service.”

Tesla rose 0.2 percent at the close in New York to $259.96,
the highest since the shares were first sold to the public in
June 2010. The shares have risen 73 percent this year.